IREDA’s QIP and Lending Strategy

The Indian Renewable Energy Development Agency (IREDA) plans to raise another ₹3,000 crore through a second tranche of Qualified Institutional Placement (QIP) in FY26. This follows a ₹2,005 crore QIP raised in June, during which the government diluted its stake by 3.24%. The new round will see a further dilution of 3.76% as part of its capital-raising strategy. Chairman & Managing Director Pradip Kumar Das stated that the funds would support lending of ₹24,000 crore, with IREDA aiming to raise ₹30,000 crore this year—up from ₹25,000 crore in FY25. The agency has already raised ₹5,903 crore in Q1 FY26, including a JPY 26 billion ECB from SBI Tokyo. Despite challenges like the Gensol Engineering loan issue, IREDA remains committed to financing emerging sectors such as e-mobility. Das emphasized the agency’s role as a key lender for renewable energy projects, with 76% of its loans in de-risked traditional assets and 22% in newer areas. Regarding the Gensol case, IREDA has provisioned ₹275 crore against an outstanding loan of ₹640 crore and appointed an Independent Resolution Professional under NCLT. Das clarified it was a case of mismanagement rather than systemic risk and stressed the need for robust monitoring without stifling access to credit. IREDA’s outstanding loan book has grown by 26% YoY to ₹79,941 crore, reflecting its expanding role in India’s renewable energy financing ecosystem.